Buccaneer Energy Limited (“Buccaneer” or “the Company”) is pleased to advise that it has increased the production rate at the Kenai Loop # 1 well to 6.0 million cubic feet per day (“MMCFD”). To achieve a 6.0 MMCFD production rate the choke has been increased to 9/64”.

Additional production rate increases will be considered on completion of drilling and testing of the Kenai Loop # 4 well.

The Kenai Loop # 1 well commenced production on 14 January 2012 and has been on continuous production since late February 2012 at 5.0 MMCFD on a 5/64” choke. During that time the production rate has been steady with no rate decline and the well performance has to date exceeded expectations.

The Company has also executed a new gas sales agreement with a third party to sell 1.0 MMCFD at US$7.50 MCF, net of pipeline tariffs, for the period 15 October – 15 December 2012. On completion of this contract the additional supply will be delivered to the local gas utility ENSTAR under the Company’s existing gas sale agreement which is an annual weighted average price of $6.24 MCF